Project Description
Financial Planning Essentials, 2nd Edition
Warren McKeown, Marc Olynyk, Lisa Ciancio, Diem La
Interactive E-Text: 9781394183845, Print Textbook: 9781394286164
The second edition of Financial Planning Essentials sets the standard for introductory financial planning texts. Tailored for first-year undergraduate students, it delivers a clear balance of conceptual understanding and practical application, essential for advising clients on a range of wealth management topics, from investment decisions to estate planning.
Available in our low-cost subscription platform, Wiley Business Now. It also includes an Instructor Resource Toolkit and is supported by our local Wiley team.
Table of Contents
Introduction
1.1 What is personal financial planning?
1.2 Wy is personal financial planning important?
1.3 Professional standards for financial planning
1.4 Understanding risk
1.5 Features of the economic environment
1.6 The global financial crisis and its impact on Australia
1.7 The evolution of the financial planning environment
1.8 The regulatory framework that applies to financial planning
1.9 What investors and financial planning can learn from history
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Case study 3
Appendix
References
Acknowledgements
Introduction
2.1 Preparing planning financial statements
2.2 The role of the financial councillor
2.3 Using financial ratios as a planning tool
2.4 Financial mathematical skills applied in financial planning
2.5 Compound interest and the time value of money
2.6 Nominal and effective interest rates
2.7 Net present value
2.8 Further applications of the time value of money concept
2.9 Effect of tax and inflation on the rate of return
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Case study 3
Case study 4
Appendix
References
Acknowledgements
3.1 The Australian taxation system
3.2 The components of taxable income
3.3 Calculation of net tax payable for an individual resident taxpayer
3.4 Impact of tax on investment oncome
3.5 Taxation planning
3.6 Income splitting
3.7 Income versus capital growth
3.8 Tax structures
3.9 Negative gearing
3.10 Salary packing and remuneration planning
3.11 Goods and services tax
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Case study 3
Appendix
References
Acknowledgements
4.1 General attributes of investors
4.2 Broad investment classes
4.3 The risk and return relationship
4.4 The benefits of diversification
4.5 Recent performance of asset classes
4.6 General investment strategies
4.7 Behavioural finance
4.8 Investment scams
4.9 Information sources for investment choices
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Appendix
References
Acknowledgements
Introduction
5.1 Cash and fixed-interest securities
5.2 The nature of, and participants in, the fixed interest investment market
5.3 Different forms of fixed interest investments
5.4 Discount and coupon securities and a change in interest rates
5.5 The nature of, and participants in, the share market
5.6 The influences on share prices
5.7 The capital asset pricing model (CAPM)
5.8 Basic valuation models to value shares
5.9 Alternative direct investments
5.10 Qualities and characteristics of property
5.11 different forms of property investment
5.12 Features and benefits of property funds
5.13 Taxation of property investments
5.14 Property valuation methods
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Appendix
References
Acknowledgements
Introduction
6.1 Characteristics of managed funds
6.2 The regulation and structure of managed funds in Australia
6.3 Investing into managed funds- advantages, downsides and risk
6.4 Typical fee structures of MISs
6.5 The differences in managed funds
6.6 Measuring returns and analysing the performance of managed funds
6.7 Leveraged investing
6.8 Gearing, income taxes and geared investments
6.9 Margin lending
6.10 Benefits and risks of margin lending
6.11 Mortgages
6.12 Advantages and disadvantages of home ownership
6.13 Financial implications of home ownership vs renting
6.14 Financing a house purchase
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Appendix
References
Acknowledgements
7.1 Risk and risk management
7.2 Key concepts in insurance
7.3 Life, disability, trauma and health risks
7.4 House and contents risk management
7.5 Motor vehicle risk management
7.6 Other insurances
7.7 Liability risk management
7.8 Implementation and review
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Appendix
References
Acknowledgements
Introduction
8.1 What is superannuation?
8.2 The three pillars policy of superannuation
8.3 The legislative context for superannuation
8.4 Types of superannuation funds and who provides them
8.5 History of superannuation in Australia
8.6 Superannuation contributions
8.7 Investment and superannuation
8.8 Taxation of superannuation funds
8.9 Relationship breakdown and the splitting of superannuation
8.10 Fees and charges
8.11 How much will I accumulate in superannuation?
Summary
Key terms
Professional application questions
Professional application exercises
Case study
Appendix
References
Acknowledgements
9.1 what is the retirement planning?
9.2 The three phases of retirement
9.3 Funding retirement
9.4 Ordinary money versus superannuation money
9.5 Options that a member has upon retirement with their accumulated superannuation fund
9.6 Implications of the transfer balance cap
9.7 Withdrawing a lump sum in order to fund retirement
9.8 Sources of income steams in retirement
9.9 Main forms of retirement income streams
9.10 Other income support available in retirement
9.11 What is an adequate retirement income?
Summary
Key terms
Professional application questions
Professional application exercises
Case study
Appendix
References
Acknowledgements
10.1 History of social security in Australia
10.2 Centrelink and Services Australia
10.3 The range of social security benefits
10.4 Pension and allowance benefit entitlement
10.5 Assistance provided to retirees
10.6 Means testing
10.7 Assistance provided to families raising children
10.8 Assistance provided to families with disability or impairment
10.9 Support for those undertaking study or an Australian apprenticeship
10.10 Taxation of pensions and allowances
10.11 Accommodation in retirement
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Case study 3
References
Useful websites
Acknowledgements
Introduction
11.1 Obligations of the financial planner
11.2 The role of a will within estate planning
11.3 Dying interstate
11.4 Estate planning and taxes
11.5 Estate planning and trusts
11.6 Superannuation death benefits
11.7 Power of attorney
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Case study 3
Appendix
References
Useful websites
Acknowledgements
12.2 Accounting rate of return
12.3 Payback period
12.4 Net present value
12.5 Practical issues in making decisions
Summary
Key terms
Professional application questions
Professional application exercises
Case study 1
Case study 2
Appendix 12A
Appendix 12B
Appendix 12C
Appendix 12D
Executive summary
Section 1 Introduction
Section 2 Where are you now?
Section 3 Recommendations
Section 4 Investment
Section 5 Implementing the plan
Section 6 Disclaimer and authority to proceed
References
Acknowledgements
Authors
Marc Olynyk (Deakin University)
Lisa Ciancio (Swinburne University)
Diem La (Financial Planning Association of Australia)
Explore our content
This accessible edition of Financial Planning Essentials is tailored specifically for first-year students, emphasising the practical aspects of financial planning.
It covers the full spectrum of wealth management—from investment strategies and superannuation to estate planning—enabling students to acquire essential knowledge and practical skills for advising clients throughout their lives. This concise text focuses on the real-world applications of financial planning concepts, incorporating reflective questions and case examples to make the material more practical. It gradually builds knowledge by condensing foundational topics into 12 clear, accessible chapters. With the inclusion of current local case studies and industry insights, the text remains highly relevant to today’s financial landscape.
This indispensable guide inspires confidence and enthusiasm, equipping aspiring financial planners with the skills and knowledge they need to excel.
What are the Key Features of Financial Planning, 2nd Edition?
- Comprehensive Manual: A step-by-step guide designed for aspiring financial planners, ensuring a thorough understanding of financial planning essentials.
- Beginner-Friendly: Tailored for first-year undergraduate students with little prior knowledge of financial planning.
- Concise Structure: The book condenses essential topics into just 12 chapters for clarity and accessibility.
- Current Local Context: Includes updated case studies and insights relevant to Australian laws and practices.
- Practical Skills Focus: The book prioritises practical communication skills, enabling students to explain complex financial planning concepts clearly, understand various options and risks, and adapt to changes in financial regulations and markets.
- Focused Tax Information: Includes Australian income tax rates, including the Australian government’s stage 3 tax cut changes to 2024/25 tax rates.
- Enhanced Chapter on Superannuation: Chapter 8 incorporates relevant insights into superannuation updates and their impact on financial planning.
- Quality of Advice Insights: Discusses the Quality of Advice Review, offering readers deeper insights into financial planning practice.
Take a closer look:
Interactives and Key Features
Available as a interactive e-text or printed textbook, with both subscription or buy-to-own access models. This title empowers students to master concepts and excel in assessments. Lecturers are supported with an extensive, easy-to-use teaching and learning package.
Each chapter opens with a local case study, using examples and questions to reinforce financial planning concepts, encourage critical thinking, and enhance practical relevance.
Local case studies
End-of-chapter questions of varying difficulty levels are designed to test and reinforce the knowledge gained, challenging students to apply concepts and deepen their understanding.
Professional application
This boxed feature provides key advice tailored to align with current Australian laws, rates, and regulations. They ensure students are equipped with accurate, up-to-date information that reflects the legal and regulatory environment, helping them apply their knowledge effectively in real-world contexts.
Featured: Professional advice
Our superannuation chapter explores the latest updates and their impact on financial planning. This edition has been enhanced to provide students with a comprehensive understanding of these changes and their practical applications in the field.
Enhanced superannuation chapter
The Personal Finance Bulletin offers deeper insights into this essential aspect of financial planning practice, helping them better manage their own personal finances.
Featured: Personal advice bulletin
Included in each chapter, these example problems immerse students in financial-planning scenarios inspired by real-world challenges. Each scenario presents a financial planning issue tied directly to the chapter's content; guiding students step-by-step through the problem-solving process. This approach demonstrates how to apply key concepts in practice, reinforcing understanding and practical skills.
Illustrative examples
Students can personalise their eText by highlighting and taking notes, as well as other useful features including read aloud.
Personalisation features (eText)
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